UK Consumer Investments 2018: Consumer Research Report

The aim of the Consumer Investments Consumer Research Report is to study how UK consumers behave when they make financial investments. Consumer investing behaviour is studied in terms of consumers who currently own investments and consumers who hold money in a form which could potentially be released to invest into investment products (e.g. held in cash or defined contribution pensions if the consumer is aged 55+). The report considers what types of assets consumers hold, how they purchase and invest and what factors influence their purchases. It also considers how consumer investment behaviour has been influenced by developments like fund platforms.

The report found, for example, that 78% of consumers can be considered as Investors, that is they own one or more of three types of asset: risky investment products (e.g., equities, unit trusts, investment property, self-invested pension plans), cash or defined contribution pensions which they have the right to access and withdraw money from. Investors fall into two prime groups: Uncertain Investors (around one-in-four Investors) and Positive Investors (around three-quarters of Investors).These two groups are differentiated by their attitudes to taking risks, their levels of wealth, financial knowledge, approaches to investing and their gender and social grade.

Investors like their returns balanced or tipped towards income generation

Investors check frequently but judge over the medium term

Investment judgements change according to the level of wealth owned

And according to the type of investor

And according to the motives or goals of investing

Investors weigh up returns versus risk when buying

The More wealth you have the more factors you weigh up

The bigger the risks taken the more you deliberate about your choices

8. Two Main Groups Of Investors

9. Appendix

List of FiguresFigure 1 The breakdown of consumers based on their investment holdings, 2018Figure 2 The demographic profile of consumers by their investment holdingsFigure 3 Graphic view of the income and age effectsFigure 4 The average (mean) wealth held by Investors and Potential InvestorsFigure 5 The median and mean wealth held by Investors and Potential Investors by wealth groupFigure 6 The financial and demographic profile of consumer wealth groupsFigure 7 The ownership of investment, pension and cash assets by type of consumerFigure 8 The ownership of investment, pension and cash assets by wealth groupFigure 9 ISA holdings by InvestorsFigure 10 The assets held within Investment ISAsFigure 11 The assets held in collective investment and pension productsFigure 12 The types of investment funds heldFigure 13 Consumer investment intentions over the coming yearFigure 14 The net %* of consumers planning to invest more next year by type of consumer and productFigure 15 The net percentage* of consumers planning to invest more over the coming year by wealth groupFigure 16 Investor satisfaction with the growth of their wealth over the past yearFigure 17 The financial returns earned in the past year by investor satisfactionFigure 18 Consumer confidence managing their money (score between 1 and 10)Figure 19 Confidence buying a financial product without professional help by type of consumer and wealthFigure 20 Net confidence* buying without professional help by gender, age and social grade Figure 21 The main motives for investingFigure 22 The motiving for investing by wealth groupsFigure 23 Correspondence Analysis of the motivations for investingFigure 24 How investment affairs are managedFigure 25 The topics on which advice, guidance or support is needed by investment approachFigure 26 The relationship between needing advice, guidance and support and taking itFigure 27 The best source of advice, guidance and support to recommend the course of actionFigure 28 The most favoured types of professional advisor usedFigure 29 How Investors wish to execute trades/investment changesFigure 30 The percentage of investors personally using fund platformsFigure 31 The percentage of owners of specific risky investments that use fund platformsFigure 32 Net %* increasing their purchases via fund platforms over the past two yearsFigure 33 A picture of the investment preferences of InvestorsFigure 34 A Correspondence Analysis of investment judgement by wealth groupFigure 35 A Correspondence Analysis of investment judgement by type of investorFigure 36 How Investors invest by investment motiveFigure 37 The most important factors when selecting an investmentFigure 38 The factors used to determine and investment decision by wealth groupFigure 39 Average number of factors considered before making an investment Figure 40 Pictorial description of the investment profile of the two Investor groups Figure 41 Pictorial description of the demographic profile of the two Investor groupsFigure 42 How Investors invest by wealth groupFigure 41 How Investors invest by type of investorFigure 42 The key investment characteristics of the two Investor groupFigure 42 The key demographic characteristics of the two Investor group